Gross Margin Analysis

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Gross Margin Analysis
Gross Margin Analysis
Margin Category Amount Percent
Gross Margin
Cost of Goods Sold
Average Sales Price
The gross margin of a product is measured by subtracting the cost of goods sold from the selling price. The cost of goods sold includes all costs associated with producing the goods or services sold by a company. Gross margin percentage is obtained by dividing gross margin by sales revenue. Many companies offer multiple products, so properly understanding overall gross margin is often an exercise in understanding how various unit sales, price points and costs for each product or service contribute to the overall business.
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